How stable was the impaired household loan ratio from June to December 2025?

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The Impaired Household Loan Ratio Remained Stable and Low Between June and December 2025

The impaired household loan ratio demonstrated stability, remaining low at one per cent by the end of December 2025, a slight decrease from 1.1 per cent recorded in June of the same year. This indicates a continued capacity for households to manage their loan obligations. Overall household debt in Malaysia stood at RM1.73 trillion at the close of the first quarter.
Impaired Loan Ratio Stability

The ratio of impaired household loans saw a marginal improvement, declining from 1.1 per cent in June 2025 to one per cent by December 2025. This consistent low level suggests that despite economic uncertainties, the majority of households were able to service their debts without falling into default.
Household Debt Relative to Economic Size

Household debt as a proportion of the nation's Gross Domestic Product (GDP) experienced a slight reduction, moving from 84.7 per cent in the preceding quarter to 84.4 per cent at the end of the first quarter. This indicates that the growth in household debt has been broadly in line with the expansion of the economy.
Debt Service and Income Ratios

Further reinforcing the stability of household finances, the median debt service ratio for existing household loans was reported at 33 per cent. Concurrently, the median debt-to-income ratio remained unchanged at 1.3 times. These figures suggest that increases in debt are being supported by corresponding rises in income, rather than by excessive borrowing.
Overall Capacity to Meet Obligations

The assessment indicates that households, in general, possess sufficient capacity to meet their financial commitments. The government, in conjunction with Bank Negara Malaysia, continues to monitor household indebtedness and repayment capabilities to safeguard families against potential external economic shocks.

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How stable was the impaired household loan ratio from June to December 2025?

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